Amazon is making a major shift in its grocery business, announcing plans to close its Amazon Go and Amazon Fresh brick-and-mortar stores while doubling down on Whole Foods Market and grocery delivery.
Amazon is making a major shift in its grocery business, announcing plans to close its Amazon Go and Amazon Fresh brick-and-mortar stores while doubling down on Whole Foods Market and grocery delivery.In a statement released by the company, Amazon said it will shut down its physical Amazon Go and Amazon Fresh grocery locations.
Amazon launched the cashier-less Amazon Go stores in 2018 and later expanded Amazon Fresh grocery stores as part of its effort to rethink in-store shopping.Amazon said that while those formats showed promise, they did not deliver the consistent customer experience or economic performance needed for long-term expansion.Amazon said it will instead focus on Whole Foods Market, which it acquired in 2017, calling it a stronger foundation for its physical grocery business. The company plans to open more than 100 new Whole Foods Market locations in the coming years, including smaller formats like Whole Foods Market Daily Shop.The company also emphasized continued investment in online grocery delivery, which is now available in thousands of U.S. cities and towns through Amazon Fresh.Amazon said customers will still be able to shop Amazon Fresh online in areas where delivery is available, even as physical locations close. Whole Foods Market will remain Amazon’s primary physical grocery brand moving forward.Amazon did not immediately provide a timeline for closures or details about how many Amazon Go and Fresh locations will be converted into Whole Foods stores.Amazon did not say how many employees will be affected by the closures or whether workers will be reassigned to other roles within the company. The retailer also did not specify how many Amazon Go or Amazon Fresh locations could be converted into Whole Foods Market stores.Amazon said it plans to share more details as closure timelines are finalized.Amazon said it will continue evaluating its grocery strategy as customer habits evolve, with a focus on delivery, convenience and Whole Foods’ in-store experience.Fast facts about Amazon's grocery venture:
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